Not So Fun: The Dreaded Business Plan
I can remember creating one of these in business school for a pretend business venture — and then never creating one for the number of actual businesses I’ve started. As a CPA, I’ve also had clients who worked hard to create business plans, usually because they were required to for a loan. Let’s just say, from the business plans I’ve seen and the financial statements I’ve actually created, they often don’t come close to matching.
What you’re really trying to accomplish with a business plan is a lot like what we talked about yesterday: a vision for your business.
Are you going to sell online exclusively, or have a storefront?
Are you going to focus on Navajo jewelry, or is Pueblo pottery more your direction?
Is this a business you want to grow with employees, or something you want to keep small and manage yourself?
Next — how do you make that vision happen?
Who do you imagine buying your products?
What makes your jewelry business different from the competition?
Are you going to purchase inventory, work on consignment, or hire artists directly?
What will your marketing and social media look like?
And then the big one — does this business idea make money?
Start by capturing what you believe your startup costs will be. I’ve already begun building some inventory for the website I’m going to create, and good jewelry is not cheap.
What kind of margins do you need to be successful? What does that markup look like for the jewelry you’ll carry?
If any part of a business plan matters most, it’s this one. You need to be exhaustive here. Think of every cost — and don’t be conservative. Plan for worst-case scenarios.
Ultimately, you want to answer all the big questions before you make that leap.
And if you’re a visual person — write it down.
If the numbers or strategy don’t make sense as you work through this, maybe that’s a signal to pause.
Don’t be afraid to ask friends and family for their input. Often, those closest to us have insights we miss.
The Fun Stuff: What Is My Business Going to Be Called?
You might think it’s too early to name the business and that you shouldn’t force it — but trust me, it’s time.
If you’re ready to move forward, come up with the name. You’ll need it to:
- Decide how you want the business to be taxed
- Set up wholesale accounts
- Create a bank account
We’ll get into all of that later, but for now — pick a name.
I’ve always purchased domain names anytime I had an idea for a business, so I already have a collection of names to start with. But if you don’t, I’d recommend heading to name.com and plugging in ideas to find a domain that matches your business name. It can be difficult — especially finding a good .com.
Names like “Turquoise Trader” are great in that they quickly tell us what you’re about — but they don’t really set you apart. If you Google “turquoise trader,” you’ll find a bunch of similar names: turquoisetradingpost, texasturquoisetraders, turquoisetradersdirect… even a band named Turquoise Trader. That can make it hard for your customer to remember which one you are.
In Native American art, it’s common to use the founder’s name in the business:
In Gallup, you’ll find names like Ellis Tanner Trading Company and Richardson’s Trading Post.
In Albuquerque, you’ll find Palms Trading Company, Sunwest Silver Company, and Rio Grande Trading — names that don’t use the founder’s name but still carry a strong identity.
In the end, the name won’t make your business — your customer service, your selection, your pricing, and your values will.
But the name is still your first impression.
I had a domain I’ve always liked and knew it would be a great fit for this kind of business (hopefully).
The name of the business we’ll be building is: DaisyCowboy.com
